Towards transparent disclosure : theoretical review

Abstract

There exists less trust towards organizations in the field of government and business. This means that organizations have strong need to find better ways to reinforce their transparent disclosure. Transparency can be defined as making information available whereas disclosure meeting the expectations of stakeholders. When the public experiences organizational disclo- sure dialogic and true, it improves the relationships organization has with its public and result as trust, support and satisfaction among the public. In the literature, concepts transparency and disclosure have many definitions and di- mensions. This means it is difficult to define the relationship between transparency and disclo- sure. Hence, the research problem of this study is: how transparency and disclosure are port- rayed together. Research questions of this study are 1) from which perspectives are transpa- rency and disclosure discussed in the literature on organizations, communication and society, 2) what kinds of relationships do the concepts of transparency and disclosure have and 3) which concept, transparency or disclosure, better meets organizational needs?

The literature review includes 14 different peer-reviewed articles on transparency and disclosure. The conclusions consist of six perspectives on transparency and disclosure. These perspectives relate to power, medium, corporate organization, journalism, relationships and the challenges of the concepts. Also two models: a figurative summary of conclusions called house model and a model of the relation between transparency and disclosure are presented. Apart from the six perspectives, the main outcomes are inked to the relations between transpa- rency and disclosure. When together and at best, transparency and disclosure lead to better organization performance. Moreover, the relationship between transparency and disclosure is bidirectional: disclosure can result in transparency and other way around. For example when transparency leads to organizational disclosure, often the public is the actor demanding it. When disclosure leads to transparency, it means for example that the source of information is disclosed, information increased and that the organization empowers stakeholders and makes participation possible. Also it was argued that disclosure meets organizational needs the best.

Still, leaning on the data, big generalisation can’t be made. Also the views on transpa- rency and disclosure vary which can affect the balance of the results. Future research should concentrate on organizational issues that will challenge transparency and dislcosure in the future, how can organizations develop their disclosure and what determines a transparency perception for an individual.